We have heard this saying everywhere being used in disability campaigns but today we are going to use it differently. None of us would hate to be disabled be it permanently or temporarily; we as humans hate being restricted whatsoever. This saying ‘disability is not inability’ may be modified to make it seem that your disability may not cause you to be unable to provide for yourself and loved ones/beneficiaries.

Disability Insurance or disability income insurance is a form of insurance that insures the beneficiaries earned income against the risk that a risk creates a barrier for a worker or employee to complete the core functions of their work.

Accidents happen all the time and to anyone without forewarning. That does not mean that you should ignore it or think it will not happen to you because you are cautious. There is usually, though, an unfortunate trend that has been happening of late in many areas, where policy holders fake injuries to avoid work and get paid for it through disability insurance. This is one of the major loopholes of disability insurance.

This has caused insurance companies to hire private investigators to ensure that the policy holder is really injured and monitoring their activities. There are also some guidelines which are followed before paying out the claims:

  • Was the injury incurred in the process of performing your job, i.e. did you get injured playing football with your friends? Or you got injured lifting that heavy object in work? Usually if the injury occurred within the daily activities of work, then the claims most likely will be paid but outside that sadly, no (I know you can’t skip work).
  • The other thing considered is whether the disability was unpredictable. Did you know that you have a hereditary illness that you knew about or a chronic illness that would soon render you ineffective in work?
  • There is a decision that has to be made how much money will be paid and during which timeline; per week or per month?
  • Also how long the payments would continue, this is usually until the policy holder is able to resume work normally.

There are various types of disability insurance:

  • Business Overhead Expense
  • Employer-Supplied
  • High limit
  • Individual
  • Key Person
  • National Social Insurance Programs
  • Worker’s Compensation

Be it an employer or employee, get down to your local insurance expert and discuss the best way forward concerning disability insurance!